Cambridge Industrial Trust Management Limited (CIT) said on Wednesday it is buying its maiden property in the new Paya Lebar iPark precinct for S$72.3 million.
The five-storey industrial building, located at 16 Tai Seng Street, has a current gross floor area of about 16,282 square metres that will eventually increase to 19,878 square metres.
The purchase is expected to be completed by the second quarter of this year.
CIT, which is listed on the SGX, is Singapore’s first independent industrial real estate investment trust.
The vendor Nobel Design Holdings Ltd has agreed to leaseback the property from CIT for a period of six years.
Nobel Design, which had originally intended to keep the property as a long-term investment, said it was selling the property to free up capital for business expansion.
CEO of CIT, Chris Calvert, said: “We are delighted to announce our latest property acquisition which is a yield accretive, high quality asset in a growing industrial park precinct. The Property is a strategic acquisition that complements and enhances the quality of CIT’s portfolio, as well as further diversifies our asset and tenant base.”
CIT has paid a $1.18 million deposit.
It will fund the purchase through a combination of 40 percent debt from an Acquisition Term Loan Facility and 60 percent cash from the net proceeds of a Medium Term Note Issuance.
Source : Channel NewsAsia – 14 Mar 2012